1. What is sea freight (ocean freight)?​

Sea freight refers to the transportation cost of international cargo moved by sea between the carrier’s Container Yards (CY) at the origin and destination ports . It typically covers ground transportation of containers between CYs and seaports at both ends but excludes inland trucking (e.g., factory-to-CY delivery), customs clearance, cargo stuffing, duties, and insurance .​

2. What is the difference between FCL and LCL?​

  • FCL (Full Container Load): Using an entire container exclusively for one shipper’s cargo, suitable for large shipment volumes.​
  • LCL (Less than Container Load): Sharing a container with other shippers’ cargo, cost-effective for small batches of goods .​

3. What do FOB, CIF, and DDP mean under Incoterms 2020?​

  • FOB (Free On Board): Risk transfers to the buyer once goods are loaded onto the buyer’s nominated vessel. Only applicable to traditional sea transport (not container CY handover);  covers export customs .​
  • CIF (Cost, Insurance, Freight): Seller pays for cost, freight to destination port, and minimum insurance (ICC-C coverage). Risk transfers at origin port .​
  • DDP (Delivered Duty Paid): Seller bears full responsibility, including delivery to buyer’s premises, customs clearance, and all taxes (e.g., EU VAT) .​

4. What is a Bill of Lading (B/L), and who issues it?​

A B/L is a critical document serving three roles: receipt of goods, contract of carriage, and document of title . It is issued by the carrier or its authorized agent to confirm cargo loading and condition . Common types include Original B/L, Telex Release B/L, and Sea Waybill .​

5. What surcharges are common in sea freight?​

  • BAF (Bunker Adjustment Factor): Fuel price fluctuation surcharge .​
  • GRI (General Rate Increase): Scheduled base rate hike by carriers .​
  • Terminal Handling Charges (THC): Port/yard operation fees at origin and destination.​

6. How are customs duties and taxes calculated?​

Duties are determined by the destination country’s customs authority based on the cargo’s HS Code (Harmonized System Code) and declared value . HS Codes are 8-10 digit classifications for global trade standardization . Taxes (e.g., VAT, GST) vary by country and product type.​

7. What is a Telex Release, and when is it used?​

A Telex Release allows cargo release without presenting the original B/L. The carrier sends an electronic instruction to the destination agent, often used for trusted trading partners or to avoid delays in B/L transit .​

8. Can I insure my sea freight shipment?​

Yes. Basic CIF terms include ICC-C insurance (covering major risks like vessel sinking), while full coverage (ICC-A) requires additional negotiation . Insurers require detailed documentation (e.g., B/L, photos) for claims .​

9. How do I track my sea freight shipment?​

Shipments can be tracked via:​
  • Carrier websites (e.g., Maersk, COSCO) using the B/L number or container number.​
  • Third-party platforms (e.g., MarineTraffic) for real-time vessel location updates .​

10. What is ISPM 15, and how does it affect shipping?​

ISPM 15 is an international standard for wood packaging (e.g., pallets, crates) requiring heat treatment or fumigation to prevent pest spread . Non-compliant packaging may be rejected or destroyed at the destination port.​

11. Who can act as the Importer of Record (IOR)?​

The IOR is responsible for customs compliance at the destination. Typically the buyer, but some freight forwarders offer IOR services if qualified . The IOR must provide accurate documentation and pay duties .​

12. What causes customs delays, and how to avoid them?​

Common causes: Incorrect HS codes, incomplete documentation, undeclared goods . Mitigation: Verify HS codes with customs experts, submit documents 24+ hours before shipment, and avoid misdeclaration .​

13. What should I do if cargo is damaged upon arrival?​

  1. Stop unloading immediately and take photos of the container (seal, exterior) and cargo before unpacking .​
  1. Issue a Damage Report to the carrier and insurer within the claim window (1 year under Hague Rules, 2 years under Hamburg Rules) .​
  1. Provide supporting documents (B/L, packing list, inspection report).​

14. How long does international sea freight take?​

Transit times vary by route:​
  • Asia to North America (West Coast): 12-18 days.​
  • China to Europe: 25-35 days.​
  • Factors affecting speed: Direct vs. transshipment, port congestion, and weather .​

15. What is a Container Yard (CY)?​

A CY is a designated area for storing and handling containers before loading onto ships (origin) or after discharge (destination). Sea freight costs typically cover CY-to-CY transportation .​

16. Can I ship hazardous materials via sea freight?​

Yes, but strict regulations apply. You must declare the hazard class, provide a Material Safety Data Sheet (MSDS), and use certified packaging. Non-compliance may result in fines or cargo seizure .​

17. What is the difference between “Live Load” and “Drop and Pick”?​

  • Live Load: The driver waits while cargo is loaded/unloaded (charges for waiting time if delayed).​
  • Drop and Pick: The carrier drops an empty container, collects it later after loading (more flexible for shippers) .​

18. Who handles shipment pickup?​

Freight forwarders coordinate pickup with licensed carriers equipped for the cargo type (e.g., reefers for perishables). Shippers need to provide supplier contact details for coordination .​

19. What is an Arrival Notice (AN)?​

An AN is issued by the carrier to inform the consignee that cargo is approaching the destination port. It includes details like ETA, B/L number, and required documents for pickup .​

20. What items are prohibited in international sea freight?​

Prohibited goods include explosives, narcotics, counterfeit products, and perishables without proper packaging. Restrictions vary by country (e.g., food imports require health certificates) .​